ETFs AUM Approach Hedge Fund Levels at $2.13 Trillion

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Data from ETFGI, the independent global research and consultancy firm that provides services for leading institutional and professional investors worldwide and from ETP industry insights, revealed that investments in Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) increased to a new record high at $2.13 trillion by the end of April 2013. The level is now reaching close to the estimated $2.6 trillion of AUM held by hedge funds.

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According to ETFGI and ETP industry insights, ETFs and ETP’s recorded net inflows of $83 billion in April, higher than its $67 billion net inflows during the same month in 2012.

At present, there are already 4,827 ETF’s and ETPs with 9,897 listings from 209 providers listed across 56 exchanges. The previous total amount of assets of ETF’s and ETP’s was $1.95 trillion, an increase of 9.1 percent.

ETFs and ETPs posted $9.9 billion in net inflows

Last month, ETFs and ETPs posted $9.9 billion in net inflow. Data showed that the largest net inflows were generated by Fixed-income ETFs and ETPs at $8 billion. Equity ETF’s and ETPs recorded the second largest net inflows at $7.5 billion, and Active ETF’s and ETPs posted $1.3 billion net inflows.

The $8 billion net inflows generated by Fixed Income ETFs and ETPs included $2.8 billion net inflows from government bonds, $2 billion in high yield, and $980 million in corporate bond, while inflation ETF’s/ETP’s recorded the largest net outflows with $251 million.

Figures also showed that US/North American equity recorded that largest net inflows of $9.2 billion, Asia Pacific equity posted $4.5 billion, and global equity reported $1.1 billion met inflows. Emerging market equity has the largest net outflows of $5.0 billion.

Commodity ETFs and ETPs experienced $9.4 billion net out flows. Precious metals recorded net outflows of $9.0 billion and agriculture posted $335 million net outflows.

In a statement, Deborah Fuhr, managing partner at ETFGI said “April flows show investors are feeling more cautious as a result of political and economic events in Europe, the US and Asia.”

ETFGI said that iShares Exchange Traded Funds has $826 billion assets and it is the largest ETF and ETP provider, which accounts 38.9 percent market shares. SPDR’s rank second with $360 billion assets, and accounts 16.9 percent market share. Vanguard landed the third place with $288 billion assets representing 13.6 percent market share. PowerShares has $72 billion assets with 3.4 percent market share.

Last month, ETFGI said that the result of a survey from Edhec-Risk Institute indicated that 67 percent of respondents expect that institutional investors will increase their use of ETF’s. Only 4 percent of respondents expects a decline.

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